The Department of Telecommunications (DoT) has issued a show-cause notice to Idea Cellular for alleged violation of Cellular Mobile Telephone Services (CMTS) licence norms in the Delhi circle.

Earlier in 2007, the operator had allegedly issued 3,640 mobile phone connections to Limco Sales Corporation (LSC), which in turn rented them out to individuals. Under the CMTS licence, renting of SIM cards is not permitted. Idea Cellular had also informed that in the subscriber database, for the same mobile connection, the names of subscribers were changed without alternation in activation date, as and when the customer acquisition forms in the name of new customers were received.

Further, Idea Cellular had transferred various important rights to LSC without conducting regular checks to ensure its enforcement. The checks were necessary to comply with licence conditions for ensuring national security and no loss to the government revenue.

DoT has now asked Idea Cellular to reply why action should not be initiated against it for violation of licence terms and conditions.